The daily settlement process in futures trading where profits and losses are calculated and credited/debited at the end of each trading day. Ensures both parties maintain adequate margin.
A trader long 1 gold futures at $2,000 saw gold close at $2,020 — the $2,000 profit (20 x 100 oz) was credited to their account at settlement.
518 trading terms, 311 lessons, and AI-powered signals — all free to start.
Download Free